Page 61 - Obligations & Contracts Module 1-2

*2 WAYS OF CURING UNENFORCEABLE CONTRACTS:

2. Acceptance of benefits under the contract. If there is performance in either part and

there is acceptance of performance, it takes it out of unenforceable contracts; also estoppel

sets in by accepting performance, the defect is waived

4. VOID OR INEXISTENT CONTRACTS – of no legal effect

Characteristics:

a. It produces no effect whatsoever either against or in favor of anyone

b. There is no action for annulment necessary as such is ipso jure.

A judicial declaration to that effect is merely a declaration

c. It cannot be confirmed, ratified or cured

d. If performed, restoration is in order, except if pari delicto will apply

e. The right to set up the defense of nullity cannot be waived

f. Imprescriptible

g. Anyone may invoke the nullity of the contract whenever its juridical

effects are asserted against him

KINDS OF VOID CONTRACT:

1. Those lacking in essential elements: no consent, no object, no cause (inexistent ones)

essential formalities are not complied with ( e.g. donation propter nuptias – should

conform to formalities of a donation to be valid )

(a) Those w/c are absolutely simulated or fictitious – no cause

(b) Those which cause or object did not exist at the time of the transaction

– no cause/object